Rollovers

What Types of Accounts can I roll Over?

The 403(b) Savings Plan generally accepts amounts from qualified 401(a), 401(k), and 403(b) plans; 403(b) tax-sheltered annuity plans, 457(b) deferred compensation governmental plans, Traditional IRAs, SEP IRAs, and SIMPLE IRAs. Depending on the type of account, the money will be placed in either a Rollover Account or Roth Rollover Account within the 403(b) Savings Plan.

In general, you may only roll over money that is in your name. However, if you are a surviving spouse and you receive a taxable distribution from your deceased spouse’s pension plan, you may roll it over. The Fund will not accept an indirect Rollover Contribution from a Roth account in an employer-sponsored retirement plan, or an indirect Rollover Contribution of after-tax amounts from an eligible retirement plan or IRA. Rollovers from a Roth IRA are not permitted by the IRS.

Participants must be currently employed at a Y in order to roll over to the Savings Plan, but there are no limits on the amounts or the frequency of rollovers.

Why Should I roll Over my Savings?

• Your Savings in One Spot—And Growing!
  While your Rollover Account or Roth Rollover Account are in the 403(b) Savings Plan it will receive Interest Credits as set by the Board of Trustees.
• You Can Withdraw at Any Time
  You may withdraw your Rollover Account or Roth Rollover Account at any time regardless of your age, account balance or whether or not you are still working for a Y. Unless this money is rolled over to an IRA or eligible employer plan, it is subject to taxes and penalties:
  • The Fund is required to withhold 20% for federal income taxes (state laws vary). Provide the Fund with a completed IRS Form W-4R to elect a higher percentage of withholding.
  • If the account holder is under age 59½, the IRS may require an additional 10% penalty at the time the account holder files year-end income taxes.

If you leave Y employment with more than $5,000 in the 403(b) Savings Plan, the Rollover Account or Roth Rollover Account can stay in the Savings Plan and may be used towards a lifetime annuity when you retire.

• Borrow from Yourself, and Pay Yourself Back
  While you are working for the Y, you can borrow from your accounts in the 403(b) Savings Plan. Read more about loans.
• Roll Over for a Great Annuity
  One of the unique benefits of having your retirement savings in the Savings Plan is that, upon retirement, the Fund can convert those account balances directly to an annuity of your choice based on when the Savings Plan receives your rollover. Rollover Contributions received by the Fund before July 1, 2021 are eligible for an annuity (but annuitized at a lower annuity conversion rate if with the Fund for less than 10 years). Rollover Contributions received by the Fund on or after July 1, 2021 must be in the Savings Plan for 5 years or longer in order to be eligible for an annuity.

Steps to Roll in Your Savings

• Contact your former employer’s plan administrator / IRA custodian to request a rollover. Note we will only accept qualified plans and IRAs as outlined on the YMCA Retirement Fund’s Rollover Authorization form.
• Complete the Fund’s Rollover Authorization form and indicate the type of account that will be rolled in. Your former employer’s plan administrator / IRA custodian must complete a section of the form as well. They should retain a copy and inform you of any additional forms or steps they require to release the funds.
• Send a copy of the completed Rollover Authorization form to the Fund.
• You will need to contact your former employer’s plan administrator / IRA custodian to confirm their estimated processing timeline for check distribution. 
• Once the Fund receives the check, it will deposit it into your account in the Savings Plan and you will receive a confirmation letter.